Member Info for sj74

Depends if they keep issuing profit warnings.. good to get the growth in nutrition but the margins seem poor relative to peers. And beauty clearly doing worse than last year.

I think as Darth mentions there is a reasonable chance an RNS with another disposal could happen now the company is 'streamlining the business'.. it's unpredictable ATM. Especially on the beauty side.

P/E ratio will be distorted now due to reduced EPS through a big chunk of profit no longer there.

Probably suspended share buyback and reduced or maintained divi.. unless it is a one off, though doubtful.

I thought it was a one off until I looked at last year financial results.. soo much higher than now and so was the previous years (for US and the travel sector)

Does kind of make sense when profit has dropped some 30%+ from initial consensus.. plus the previous years accounting is going to be scrutinised as looks to be wrong too..

You only have to look at their revenue and EBITDA growth not to mention the net cash element to understand why they aren't valued to dissimilar to THG.

Looks like it's not just a one-off looking at past years Final results announcements.. and profit stated.

That'd be nice Darth.

It's being valued as a loss making company which it is at present.. however as it is now starting to make strides in growth maybe it should be back to being valued as a growth company.. especially nutrition.. ideally a growth company with feck all debt making a ton of cash.. that seems to be the strategy just taking some time.

Another disposal like Bentley labs would be huge..

Reducing that debt further will push the SP up and free up more cash flow as the profitability has got worse. Hopefully they are working on another disposal.

Think he's just having a wind up lol.

We know what the results are going to be already they've told us.. revenue inline with guidance and profit has taken a hit again. However, debt is coming down..

I won't be buying anymore unless they can get the funding as raising cash in the markets has become fruitless for BEM now at this level and where the development is at and what needs doing. It's not cheap now, everything is to the point where you need a partner or funding package of some sort of significance. They do that, confidence will rise 10 fold here.

In my view, not that it counts for much.. I just don't believe telling the market will make a hot of difference as it doesn't believe BEM can attract the type/quantity of funding to push both projects forwards in terms of the pilot testing/feasibility/permits etc..

So if Ed can do it then the boost will be rather quite significant imo if we get the requisite funds. Jury is very much out whether it can be done though.

I expect it will come out of the blue in terms of funding RNS and if nothing before Xmas I suspect things aren't going well re funding.

Thanks Toph, I think if Ed can achieve securing some decent capital without discounting and huge dilution that will be taken very well by the market so fingers crossed 🤞

Results aren't going to be great we already know this.. profit has fallen again..

BUT nutrition revenue is on the up and they are very active on this plus debt is reducing.. slowly becoming more cash generative.. so I wouldn't expect anything special on results.

If they can eliminate the debt and use the FCF to grow the company and do the odd share buyback THG will become a beast.

I don't think they are protecting market share I think they want to massively grow it, and doing what they are doing will enable it to also go from 30,000 doors to 100,000 so I see their rationale whilst they are in growth mode. Tough one though.

I think that is what is driving the SP right now, the decrease in debt and the potential for another disposal.. without the disposal it's likely the SP would of gone down with profitability down on last year. Clearly beauty isn't performing as well as it was.. last year beauty EBITDA £80 Million. This year total for group £75 million.

However, removing the debt and with the lowered CAPEX is turning THG into a cash machine so swings and roundabouts.

APN H1 EBITDA is near £14 million with £9million FCF and no debt. They are actually making money unlike THG.

THG H1 EBITDA for whole group is only £20 something million and not making that much profit.. obviously I think this is about to change as the debt slowly gets smaller and nutrition gains more and more traction..

However it appears Nutrition is still heavily in growth mode with the offline model and Korea expansion resulting in double digits growth, and rightly money is going into the growth and as such maybe it will be valued more as a growth share again...

I'm not greedy, I only want £1 😉

Coupled with hopefully a small debt profile and sky's the limit 😱🔥